NSE issues profit warning for 2016 earnings

An investor monitors trading at the Nairobi Securities Exchange. NSE says its 2016 profit will be at least 25 per cent lower than the previous year, hurt by a decline in equity market prices. PHOTO | FILE

The Nairobi Securities Exchange (NSE) says its 2016 profit will be at least 25 per cent lower than last year, hurt by a decline in equity market prices.

The firm reported a 4.5 per cent drop in net profit to Sh305 million in 2015 compared to 2014 attributed then to lower trading turnover.

On Wednesday, NSE chief executive Geoffrey Odundo said a challenging environment in the year for the capital markets marked by a decline in equity markets prices had led to the projection.

Trading revenues account for 53 per cent of NSE’s revenue stream.

“Based on projections for the remainder of the year, the company is expected to record a decline of more than 25 per cent in net profit attributable to the shareholders of the company for the financial year ended 31 December 2016 as compared to that for the same period ending 31 December 2015,” said Mr Odundo in a cautionary statement.